The Liontown Resources Ltd (ASX: LTR) share price shot the lights out on Friday, rising 18.52% to an intraday high of 64 cents per share.

This made the ASX lithium share the fastest riser of the S&P/ASX 200 Index (ASX: XJO) today.

Liontown shares closed slightly lower at 63.5 cents, up 17.59%.

The leap in Liontown shares is interesting given the lithium carbonate price just sunk to a four-year low.

According to Trading Economics, the lithium carbonate price fell to US$9,030 per tonne due to ongoing global oversupply.

This likely contributed to the mixed-bag performance among other ASX 200 lithium shares on Friday.

At the market close today:

The Pilbara Minerals Ltd (ASX: PLS) share price was down 0.68% to $1.47

The Core Lithium Ltd (ASX: CXO) share price was down 1.41% to 7 cents

The Sayona Mining Ltd (ASX: SYA) share price was up 5.88% to 1.8 cents

The Lake Resources NL (ASX: LKE) share price was steady at 3.1 cents

The IGO Ltd (ASX: IGO) share price was up 1.97% to $4.15

The Mineral Resources Ltd (ASX: MIN) share price was up 1.54% to $21.06

Why did the Liontown share price soar on Friday?

There was no official news from Liontown to explain its share price surge today.

However, the company provided two market announcements earlier in the week that were well-received by investors.

On Tuesday, Liontown's CEO and managing director, Tony Ottaviano, presented at the Macquarie Conference.

Ottaviano told investors that strong operational execution had underpinned Liontown's FY25 performance to date.

He said Liontown had achieved positive net cash flow from operating activities for two consecutive full quarters.

Liontown began lithium processing at Kathleen Valley on 31 July 2024.

Liontown reported concentrate production of 208,629 dry metric tonnes (dmt) over the first three quarters of FY25.

Sales over the three quarters totalled 186,113 dmt.

Its revenue was $205 million with an average realised price of US$812 per dmt.

Liontown's unit operating cost was $816 (US$512) per dmt sold.

At the end of the March quarter, Liontown had a cash balance of $173 million.

Liontown lodged its presentation with the ASX and the share price rose 1.58% on the day.

On Wednesday, Liontown announced it had secured a $15 million interest-free loan with the Western Australian Government.

The loan followed Liontown's application to access the Government's Lithium Industry Support Program.

After the interest-free period, Liontown will have two years to repay the loan via quarterly instalments.

The interest-free period will cease after average lithium spodumene prices exceed US$1,100 per tonne for two successive quarters or by 30 June 2026, whichever occurs first.

Liontown expects to receive the loan funds in the current quarter.

The Liontown share price rose 6.8% on the news.

Ottaviano said:

We thank the Western Australian Government for its support of Liontown and its immediate response to the needs of the sector.

Its support in the current low-price environment demonstrates the Government's understanding and unwavering commitment to the State's critical lithium industry.

Why is the lithium price at a four-year low?

In an update, Trading Economics said:

Sales of new energy vehicles in China rose by 38% annually to 991,000 in March according to the China Passenger Car Association …

The data was in line with recent trends that China's EV market has not grown at the pace expected following the boom at the turn of the decade, resulting in subsidies for battery producers by Beijing that triggered a surge in output and a supply glut.

Consequently, battery inventories are set to remain elevated as EV manufacturers display no rush for new deals.

Trading Economics said supply is not expected to fall, given that many lithium miners refuse to close operations.

Despite low lithium prices, miners want to retain market share and business relationships with governments and battery producers.